Interest and Penalty Provisions
Interest on late payments is charged at the rate of twelve percent (12%) per annum. Interest charges commence on the original due date of the tax return. The penalty for late filing of a return is five percent (5%) of the tax owing and an additional one percent (1%) for each month or part of the month during which the return remains outstanding. (Section 37 (1) (a) and (b) of The Tax Administration And Procedures Act 2003)
Where the Comptroller makes a demand in writing that a person provide additional information that is relevant to the determination of a taxpayer's tax liability, and that person fails to file the return or provide the information within the time specified, there is a penalty of one thousand dollars ($1,000). An additional one thousand dollars ($1,000) penalty can be applied to a second request if that request also is not responded to appropriately. (Section 37 (2) (a) and (b) of the Tax Administration and Procedures Act 2003)
Section 38 of The Tax Administration and Procedures Act 2003 states:
Where any tax is underpaid, or may have been underpaid as a result of an incorrect statement or a material omission in the taxpayer's tax return, or other incorrect information provided by the taxpayer, and that statement or omission or incorrect information is a result of intentional conduct or negligence on the part of the taxpayer, the taxpayer shall be liable to a penalty in the amount of twenty-five percent (25%) of the underpayment.
TAX EVASION AND IMPEDING INLAND REVENUE OFFICERS
The penalties for tax evasion and impeding Inland Revenue in the administration of the tax laws are significant.
Any person who willfully evades or attempts to evade an assessment, payment or collection of taxes commits an offence and on summary conviction is liable to a fine not exceeding $30,000 or to imprisonment for a term not exceeding one year or both (Section 60 of the Tax Administration and Procedures Amendment Act No 22 of 2012).
Any person who obstructs the Inland Revenue Department in its administration of the this Act commits an offence and is liable on summary conviction to a fine not exceeding fifteen thousand dollars ( $15,000), or imprisonment for a term not exceeding one year or both. (Section 60 (2) of the Tax Administration and Procedures Amendment Act No 22 of 2012).
Taxpayers are reminded that property tax is due and payable each year, on or before June 30th.
NB All property bills with arrears, must first be queried at the Customer Service Section, before payment is made. Property bills without arrears should be taken directly to the Cashier Section for payment.
All vehicle owners whose licence plate ends with 1, must renew their vehicle licence before January 31st. Similarly, if your vehicle licence plate ends with 2, you must renew your vehicle licence before February 29th to avoid interest charges and ticketing fees..
All insurance companies are reminded that a statement showing the number of policies issued, the value of every policy and any other information required by the Accountant General must accompany the registration fee remittance and the insurance premium remittance. The forms can be found under Form & Guides tab then click on Tax Returns.